Liontrust Asset Management Shares Slide Amid Outflows and Market Uncertainty

Liontrust Asset Management Plc (LON: LIO) shares continue to decline, adding a further 3% fall on Thursday after the company reported a drop in assets under management (AUM) for the third quarter of 2024.

The company's shares are down around 12% this year and have fallen over 19% in the last six months of trading.

The company revealed in a trading update for the three months ended 30 September 2024 that assets under management and advice (AuMA) were £26 billion as of 30 September, representing a decrease of 4% year-on-year.

The AUM decline was primarily attributed to net outflows of £1.1 billion during the period (down from £1.6 billion in 2023), which LIO said was driven by market uncertainty and a challenging environment for active managers.

Liontrust CEO John Ions stated that the “speculation and uncertainty” surrounding changes to taxation and reliefs in the lead-up to the UK's Budget had negatively impacted investor confidence.

This, combined with the ongoing challenges faced by active managers, “has contributed to another quarter of net outflows as the challenging environment for active managers has continued for longer than anticipated,” added Ions.

Despite the headwinds, Liontrust remains optimistic about its long-term prospects. The company has been investing in its business to improve its efficiency and enhance its offerings to clients.

Additionally, Liontrust has been expanding its distribution channels and fund range to reach a wider audience.

“Despite the current difficult period for active managers, Liontrust is well positioned to drive the business forward. We have a clear and focused strategy that we continue to execute successfully,” stated the firm.